Modern processors could be considered software as much as they're hardware.
Further, it delivers what the customer expects. It just turns out that Intel nicely provided additional functionality that you can unlock if you pay for your part of the R&D cost of it (which is the real cost of processors).
For all we know, every modern appliance is counting down the days until the warranty expires at which point it self immolates, forcing you to buy another.
That isn't the case in this situation, though. The expectations of the device were entirely up front and this was more of an "aha!".
As an aside, my auto has a built in system that monitors car telemetrics, has GPS functionality, a built in cell phone and "lojack" system, etc. I paid for this as a part of the car. It is completely useless the moment I stop paying a monthly service fee.
Short excerpt:
Even at speeds of up to 40 MPH on the runway, the attack packets had their intended effect, whether it was honking the horn, killing the engine, preventing the car from restarting, or blasting the heat. Most dramatic were the effects of Device Control packets to the Electronic Brake Control Module (EBCM) — the full effect of which we had previously not been able to observe. In particular, we were able to release the brakes and actually prevent our driver from braking; no amount of pressure on the brake pedal was able to activate the brakes. Even though we expected this effect, reversed it quickly, and had a safety mechanism in place, it was still a frightening experience for our driver. With another packet, we were able to instantaneously lock the brakes unevenly; this could have been dangerous at higher speeds.
Further, it delivers what the customer expects. It just turns out that Intel nicely provided additional functionality that you can unlock if you pay for your part of the R&D cost of it (which is the real cost of processors).
There is nothing wrong with this practice.